Lower Gas Prices Could Save Consumers $270 Billion Annually

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 |  Includes: DBO, OIL, UGA, USO
by: Mark J. Perry

 

Gas prices have fallen below $2 per gallon in so many states now, I figured it's not news any more, and it was time to move on to a new benchmark.

So, here some news: Gas prices in Houston fell below $1.75 Tuesday at some stations (see chart above), and are the lowest in almost two years (see chart below, for average Houston prices).

Moreover, the sharp decline in average prices from the peak of $3.94 in July to $2.04 per gallon in Houston over the last four months represents an annual savings for consumers of more than $270 billion (see calculation here), compared to the outcome if gas prices had stayed at $3.94.